U.S. investigating Huawei over suspicions of bank fraud, violating Iran sanctions: sources

World

In 2012, HSBC paid $1.92 billion and entered a deferred prosecution agreement with the U.S. Attorney’s office in Brooklyn for violating U.S. sanctions and money-laundering laws.

An HSBC spokesperson declined to comment. HSBC is not under investigation, according to a person familiar with the matter.

Huawei also declined to comment. After news of the arrest, Huawei said it has been provided little information of the charges against Meng, adding that it was “not aware of any wrongdoing by Ms. Meng.”

A spokesman for the U.S. Attorney’s office in Brooklyn, which Reuters has reported is investigating Huawei, declined to comment.

as news of the arrest heightened anxiety over prospects of a collision between the world’s two largest economic powers, not just over tariffs but also over technological hegemony.

HSBC’s U.S.-listed shares initially fell as trading volume rose, dropping as much as 6 per cent after Reuters reported the bank’s link to the case, and were subsequently down 4.7 per cent.

Huawei is already under intense scrutiny from Washington and other western governments over its ties to the Chinese government, driven by concerns it could be used by Beijing for spying. It has been locked out of U.S. and some other markets for telecom gear, but has repeatedly insisted Beijing has no influence over it.